AXXel Knutson Re-iterates Strong Buy on the Defense Sector

On September 20, 2001 AXXel Knutson of TradingWeapon.com, an OSJ office of First Allied Securities, Inc., issued his strongest "Buy Signal" that he as given since August of 1981. In August of '81, the Dow was at 888. At that time he suggested that the defense sector would be one of the strongest and here Axxel re-iterates that strong opinion along with the specific names.

February 11, 2002
[prices as of 2.9.02]

AXXel's VTAR Newsletter-
Let's Do Defense One More Time

Using, AXXel Knutson's
VTAR

["Volume Trade Analysis Research"]
"Manage the risk...the profits will take care of themselves"

Securities offered through
First Allied Securities, Inc.

Member NASD & SIPC
197 Mountainview Road - Warren - NJ - 07059
Email: axxel@optonline or tradingweapon@aol.com
Telephone: 908.647.5750 FAX: 708.585.6185
First Allied is registered in all states. Mr. Knutson's registered states are listed in the disclaimer section. TradingWeapon VTAR [Volume Trade Analysis Research] TradingWeapon & TradingEngine is Trade and service marked by and owned by Axxel Knutson.

AEROSPACE & DEFENSE

The group has completed a consolidation and now the group can be re-purchased. That means the following are buys right here:

General Dynamics [GD-82.15] and looking for a successful test of the October 2001 high near $95. Update 2.11.2002: $ 87.70 + $5.55 = + 6.7% survived the "Enron crunch" very nicely and now does appear in progress toward our triple digits.

Lockheed Martin [LMT-47.82] and looking to surpass the mid-50's it saw also in October. Update 2.11.2002: $ 54.38 and a new high and has met our mid-50's" objective but there is no speculation according to VTAR, so average up.

Lockheed Martin Chart courtesy of Clearstation.com

Boeing [BA-40.54] a bargain and a buy here to surpass the 9.11 crash from the mid 50's. Update 2.11.2002: $41.70 + +1.16 = + 2.9%. Strong Buy.

Northrop Grumman [NOC-98.93] accumulate sub-$100. Update 2.11.2002: $ 109.25 +$10.32 = + 10.3% and again, no evidence of speculation. Average up.

Raytheon [RTN-32.86] also to attack the October highs and in this case that was about $37. Buy. Update 2.11.2002: $ 38.00 = + $5.14 = + 16.6% average up this as well...now get it done.

United Industrial [UIC-16.98] a very strong move to the 19+ range and now appears ready to complete to the twenties. Update 2.11.2002: $ 18.45 = + $1.51 = + 8.9% average up here as well with an objective of the mid-20's.

Esterline Technology [ESL-16.20] we expect a mirror move of the crash pattern $20 to $11 and if that were to occur, our objective would be about 23-27. Buy. Update 2.11.2002: $ 16.75, up $0.55 = + 3.3% - but a little blah. We still rate this positive, but prefer the above stocks. Move this $$$ to those issues.

NEW NAMES:

Orbital Sciences Corp. [ORB-5.14] a space technology and satellite services company that designs, manufactures, operates & markets a broad range of space products
& services. We like the base at the $3.00 area and the spikes to $6+ - accumulate here and under five. Losses and high labor content-so spec players only please.

Edo Corp. [EDO-28.61] with nice revenues and bottom line performance, we are now looking for the move into the thirties and we think those prices will likely stick-they didn't in September/October, 2001. Edo a supplier of highly engineered products for Defense,
Space and Communications, and Engineered Materials. For the 9 months ended 9/29/01, net sales rose 29% to $187.3M. Net income applicable to Common totaled $9.6M vs. a loss of $1.8M. Results reflect the merger with AIL Technologies, the entry into new markets and lower merger-related and other special charges.

Taser, Intl. [TASR-16.71] time to make the second move from the mid teens to the 20's and this time to hold those numbers. Accumulate here: Buy. Need we tell you what they make? TASR develops, assembles and markets less-lethal, conducted energy weapons primarily for use in the law enforcement and corrections market. For the 9 months ended 9/30/01, revenues increased 71% to $4M. Net income totaled $83K, vs. a loss of $233K. Revenues reflect higher sales of ADVANCED TASER, primarily to the law enforcement agencies.

TASR Chart courtesy of Clearstation.com

Curtiss Wright Corp [CW-50.15] a grand old name in aircraft engines [no more] and props [no more] and a great stock base [now] and power to see a break to the upside. Now they design, develop and manufacture flight control actuation systems and components for the aerospace industry, provides metal treating services, and manufactures highly engineered valves for flow control. Buy under $50

DISCLAIMER

Investment decisions should not be based solely on our proprietary indicators, which are intended as an adjunct to your additional analysis. Please accept these comments as market commentary. We do not intend these comments to replace detailed fundamental analysis. We urge you to accomplish that additional research via your contacts on the Internet or through a trusted financial advisor. If you want additional information on any of the securities discussed within, we will give it upon your request.

This report has been prepared from original sources and company data we believe to be reliable, but we make no representation as to its accuracy or completeness. This report is published solely for information purposes. It is not to be construed either as an offer to buy or sell or the solicitation of an offer to buy or sell any security or the provision of or an offer to provide investment services in any state where such an offer, solicitation or provision would be illegal. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice and we likely not update that change to you. The opinions expressed are that of AXXel Knutson and are not necessarily representative of First Allied. First Allied Securities, Inc., its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein.

The author of this report, Axxel Knutson, does not invest in any of the securities mentioned in this report nor does his immediate family unless such securities are management companies of mutual funds or indirectly if such equities are included in mutual funds or index options. AXXel does not accept any fees from any company reported or discussed with the media. Equity investment involves risk of capital loss. We recommend that your portfolio be diversified by company size, industry group, and geographic region and by currency.

It should not be assumed that future selections will be profitable or will equal the performance of past selections. Securities listed herein illustrate selections made using proprietary indicators known as VTAR [Volume Trade Analysis Research]. These names, VTAR, TradingWeapon, www.TradingWeapon.com Trading Engine, www.tradingengine.com , Volume Trade Analysis Research, are service marks/trademarks of AXXel Knutson.

All recommendations and commentary are directed toward sophisticated, aggressive traders who have significant experience trading in a volatile market and who possess the financial resources to risk a loss of some or all of their invested funds. Commissions and, if you use margin, interest charges will lessen any return on investment. VTAR [Volume Trade Analysis Research] centers around the proprietary analysis of trading volume, price, general fundamental analysis, beta concerns, group rotation and detailed analysis of risk as it relates to entry and exit points in reasonably liquid stocks.

Axxel Knutson, President
axxel@optonline.net or axxel@blast.net
www.TradingWeapon.com is a premium investor service -
VTAR [Volume Trade Analysis Research]
197 Mountainview Road, Warren, NJ 07059-8038
Telephone: 908-647-5750; FAX 708-585-6185.
AXXel Knutson is a registered Principal of and securities are offered through
First Allied Securities, Inc. Member NASD/SIPC"

Axxel is guest co-host at JAGfn's Internet television every four weeks or so-tune in at www.JAGfn.com. [currently re-organizing]. [He is a regular commentator for the BBC "World Service" and you may hear AXXel's commentaries via short wave on the various BBC bands including the BBC "World Service" and BBC 5's "Wake Up to Money." He is guest commentator for Radio Scotland out of Glasgow. These reports may be available at www.multex.com and www.ibes.com.

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If you want me to handle your account...

In response to inquiries relative to opening securities accounts handled directly by AXXel Knutson, here is the deal: Accounts are handled directly by Knutson [TradingWeapon.com is the business name for AXXel Knutson, who is a Registered Principal of an independently owned office of Supervisory Jurisdiction [OSJ] with First Allied Securities, Inc. TradingWeapon.com offers all of its securities business through First Allied Securities, Inc., a member of the NASD/SIPC. Bear Stearns Securities Corp. is the clearing agent for First Allied. There are no additional investment management fees and there is no sharing of profits or losses. Client-selected stocks may not enter the account unless approved by AXXel and this is not a likely occurrence. AXXel hates your stocks. The minimum account accepted is $100,000. Sob stories are listened to for amounts under $100k but rarely accepted unless AXXel is in the mood. These accounts tend to be trading accounts so don't even ask if you can't stand the activity and at times total inactivity and cash. AXXel very rarely trades in the same stocks as clients or those written about in his newsletters or spoken about in media appearances with the exception of stock index options and mutual fund management companies. AXXel will disclose positions personally held in any such stocks in newsletters when published. First Allied Securities, its brokers and its officers may take and have positions in any stock mentioned although they receive no advance notice of new recommendations or changes in opinion. The opinions expressed within are those of AXXel Knutson and may not be shared by First Allied Securities, Inc. its management or its brokers. Those interested in additional information on any stocks discussed within may call at 908-647-5750 or email AXXel at axxel@optonline.net. We do not deal in BB stocks [with the exception of some ADR's]. Refreshing, isn't it?
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